Shippers may have considerable doubts about whether they should engage a 3PL. They have reservations about the cost of outsourcing or they feel they have their logistics operations in fine order themselves. Still, it may pay off to go with a 3PL after all.
Today's logistics service providers no longer just take care of warehousing and shipping. They can take a company to the next level with services such as order management, sales support, e-commerce and IT integration. We list 5 advantages of partnering with a logistics service provider. And how does a partnership with a 3PL actually come into its own?
1.Expertise
3PLs take care of logistics. That's all they do. Maybe you have a transport manager running around who is not an expert in logistics. Isn't it better to leave these activities to experts?
2.Efficiency
3PLs not only have the know-how to take over logistics from you, they also have the right technology and infrastructure to take care of logistics from A to Z. This ultimately allows you to offer your customers a better, probably faster service
3. Technology
Logistics service providers have access to the latest technologies. This saves you a considerable investment. Do ensure that you partner with a 3PL that has TMS software and other technologies in-house and does not outsource them to a software provider. It could prove to be a costly business – and in some cases even impossible – if you wish to update the software at a later stage.
4.Focus
By outsourcing your logistics activities, you can refocus on your core business.
5.Scalability
Scalability is perhaps one of the most important reasons for outsourcing logistics. 3PLs can grow with you indefinitely. If your business triples in 2 years, you don't have to move, you don't have to buy additional equipment and you don't have to hire additional staff. All you have to do is call the 3PL. You pay for what you use, so you can also downsize if needed.
Yet there are also some cases where a logistics provider is less useful. For example, if you do business locally or have a strong focus on distribution, it may pay to handle logistics yourself.
Don't throw it over the fence
When working with a logistics service provider, it is important that the shipper does not simply throw his activities over the fence. After all, the logistics service provider cannot do it alone. It is important that both parties take responsibility for the outcome of the outsourcing. It pays to bet on intensive cooperation, where the processes of both the shipper and the logistics service provider are well aligned.
Editorial LogistiekProfs
